The treatment, disposal, and resource utilization of waste mud are challenges for engineering construction. This study investigates the road performance of waste mud–solidified soil and reveals the mechanism of how solidifying materials influence the strength and deformation characteristics of waste mud. Waste mud, collected from a highway reconstruction project, was mixed with ordinary Portland cement as a solidifying material. Unconfined compressive strength tests, consolidated undrained triaxial shear tests, resonant column tests, and consolidation compression tests were conducted to evaluate the solidification effect. The test results show that with an increase in cement content from 5% to 9%, the unconfined compressive strength of the waste mud–solidified soil increased by over 100%, the curing time was extended from 3 days to 28 days, and the unconfined compressive strength increased by approximately 70%. However, an increase in initial water content from 40% to 60% reduced the unconfined compressive strength by 50%. With the increase of cement content from 5% to 9%, the cohesion and friction angles increased by approximately 78% and 24%, respectively. The initial shear modulus under dynamic shear increased by approximately 38% and the shear strain corresponding to a damping ratio decay to 70% of the initial shear modulus decreased by nearly 11%. The compression coefficient decreased by approximately 55%. Scanning electron microscopy and X-ray diffraction tests showed that a higher cement content led to the formation of more hydration reaction products, especially an increase in the content of AlPO4. The bonding material between soil particles significantly increased, exerting a bonding and filling effect on soil particles and firmly adhering them together. Consequently, the strength of the waste mud–solidified soil increased significantly while its compressibility decreased.